Export rebate under excise law is limited to duty on transaction value, excluding freight and insurance charges.

Rebate under Rule 18 and Notification No. 19/2004-C.E. (N.T.) is confined to duty paid on exported excisable goods as valued under Section 4 of the Central Excise Act, 1944. Because transaction value excludes post-removal charges such as freight and insurance, duty attributable to those elements does not enlarge rebate entitlement even if such duty was actually paid. The operative effect is that rebate is limited to duty relatable to the Section 4 transaction value, and not to duty on freight and insurance included in export valuation.

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Issues: Whether rebate under Rule 18 and Notification No. 19/2004-C.E. (N.T.) is admissible on duty paid on freight and insurance included in the export value, or only on duty relatable to the transaction value under Section 4 of the Central Excise Act, 1944.

Analysis: Rebate under the notification is confined to duty paid on exported excisable goods, and the valuation of such goods is governed by Section 4 of the Central Excise Act, 1944. Transaction value under Section 4 excludes post-removal charges such as freight and insurance, since these are not part of the price at the place of removal. The duty paid on such post-factory elements, though actually paid, cannot enlarge the rebate entitlement when the statutory valuation base itself excludes those elements.

Conclusion: Rebate is not admissible on the portion of duty paid on freight and insurance. The claim is confined to duty on the transaction value, and the revision succeeds.

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